. /.  WORLD TRADE  
ORGANIZATION  WT/DS257/22 
12 September 2005 
 (05-3950) 
 Original:   English 
  
UNITED STATES – FINAL COUNTERVAILING DUTY DETERMINATION WITH 
RESPECT TO CERTAIN SOFTWOOD LUMBER FROM CANADA 
 
Recourse by Canada to Article 21.5 of the DSU
 
 
Notification of an Appeal by the United States  
under Article 16.4 and Article 17 of the Understanding on Rules  
and Procedures Governing the Settlement of Disputes (DSU),  
and under Rule 20(1) of the Working Procedures for Appellate Review  
  
 The following notification, dated 6 September 2005, from the Delegation of the United States, 
is being circulated to Members.  
_______________ 
 
 
 Pursuant to Article 16 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") and Rule 20 of the Working Procedures for Appellate Review, the 
United States hereby notifies its decision to app eal to the Appellate Body certain issues of law 
covered in the Report of the Panel on United States – Final Countervailing Duty Determination with 
Respect to Certain Softwood Lumber from Canada: Recourse to Article 21.5  of the DSU by Canada  
(WT/DS257/RW) ("Panel Report") and certain legal in terpretations developed by the Panel in this 
dispute.  1.  The United States seeks review by the Appellate  Body of the Panel's legal conclusion that the 
First Assessment Review does not fall outside the scope of the present DSU Article 21.5 proceeding, insofar as the pass-through analysis is concerned.
1 This conclusion is in error and is based on 
erroneous findings on issues of law and relate d legal interpretations of DSU Article 21.5. 
 2. The United States seeks review by the Appellate  Body of the Panel's legal conclusion that the 
United States failed, in the treatment of pass-th rough in the First Assessment Review, to properly 
implement the recommendations and rulings of th e Dispute Settlement Body by not conducting a 
pass-through analysis with respect to sales, found not to be at arm's length, of logs by tenured timber 
harvesters, whether or not they also produce lumb er, to unrelated timber producers, whether or not 
they hold a stumpage contract.
2  This erroneous conclusion is b ased on the Panel's erroneous legal 
conclusion, described in paragraph 1, above, that  the First Assessment Review does not fall outside 
the scope of the DSU Article 21.5 proceeding. 
 
                                                      
 1  Panel Report, paras. 4.36-4.50, and 5.1, first subparagraph. 
 2  Panel Report, paras. 4.58-4.82, 4.104-4.106, and 5.2, first subparagraph. WT/DS257/22 
Page 2  
 
3. The United States seeks review by the Appellate Body of the Panel's legal conclusion that, in 
the First Assessment Review, the United States in cluded in its subsidy numer ator transactions for 
which it had not demonstrated that the benefit of  subsidized log inputs had passed through to the 
processed product.
3  This erroneous conclusion is based on the Panel's erroneous legal conclusion, 
described in paragraph 1, above, that the First As sessment Review does not fall outside the scope of 
the DSU Article 21.5 proceeding. 
 4. The United States seeks review by the Appellate  Body of the Panel's legal conclusion that, 
with respect to the First Assessment Review, the Un ited States remains in violation of Articles 10  
and 32.1 of the Agreement on Subsidies and Countervailing Measures  ("SCM Agreement") and 
Article VI:3 of the General Agreement on Tariffs and Trade 1994  ("GATT 1994").
4  This erroneous 
conclusion is based on the Panel's erroneous legal conclusion, describ ed in paragraph 1, above, that 
the First Assessment Review does not fall outside the scope of the DSU Article 21.5 proceeding.  5. The United States seeks review by the Appellate  Body of the Panel's legal conclusion that, 
with respect to the First Assess ment Review, the United States has nullified or impaired benefits 
accruing to Canada under the SCM Agreement and the GATT 1994.
5  This erroneous conclusion is 
based on the Panel's erroneous legal conclusion, d escribed in paragraph 1, above, that the First 
Assessment Review does not fall outside th e scope of the DSU Article 21.5 proceeding.  
 
__________ 
 
                                                      
 3  Panel Report, paras. 4.114-4.115, and 5.2, second subparagraph. 
 4  Panel Report, paras. 4.114-4.115 and 5.4. 
 5  Panel Report, para. 5.5.